The Union Ministry of Minority Affairs has informed the Lok Sabha that it is currently seeking approval from the Expenditure Finance Committee (EFC) to restore scholarship schemes for minority communities.
Current Status: The schemes have effectively been on hold since the 2021-22 fiscal year.
Future Timeline: The Ministry is aiming for approval for the 16th Finance Commission cycle, which commences on April 01, 2026.
Why were the Scholarships Discontinued?
The interruption in funding was primarily due to governance and transparency concerns flagged by the National Scholarships Portal (NSP).
- The Trigger: “Red flags” generated by the NSP indicated potential irregularities.
- The Action: The Ministry initiated investigations into alleged embezzlement of funds. This involved verifying “suspicious institutions” and taking punitive action against defaulters.
- Consequence: Due to these ongoing verifications, the schemes were not approved for implementation beyond 2021-22.
The scholarships are designed to support students from the six notified religious minority communities in India (Muslims, Christians, Sikhs, Buddhists, Parsis, and Jains).
Key Schemes Involved:
- Pre-Matric Scholarship Scheme
- Post-Matric Scholarship Scheme
- Merit-cum-Means based Scholarship Scheme
What is the Procedural Next Step?
- EFC Approval: Before any large-scale government scheme is restored or launched, it requires clearance from the Expenditure Finance Committee (EFC) to ensure fiscal prudence.
- 16th Finance Commission: The restoration is being aligned with the upcoming fiscal cycle of the 16th Finance Commission (starting 2026), indicating a long-term structural reboot rather than an immediate ad-hoc restart.
About Expenditure Finance Committee (EFC) :
- What is it? A committee under the Union Ministry of Finance (Department of Expenditure) that appraises and approves scheme proposals before they receive final financial sanction.
- Chairman: It is chaired by the Secretary (Expenditure).
- Mandate: It typically appraises schemes involving expenditure between ₹100 crore and ₹500 crore. (Schemes above ₹500 crore usually require Cabinet/CCEA approval after EFC appraisal).
The 16th Finance Commission :
- Constitutional Basis: Constituted under Article 280 of the Constitution by the President of India.
- Chairman: Dr. Arvind Panagariya (Former NITI Aayog Vice-Chairman).
- Tenure of Recommendation: It will cover a 5-year period starting April 1, 2026.
- Function: To recommend the distribution of tax proceeds between the Centre and States (Vertical Devolution) and among States (Horizontal Devolution).
